Solteq Plc Interim Report 1 January 2018 – 30 September 2018 (IFRS)

25.10.2018

Attachments

932555.pdf


Solteq Plc Stock Exchange Bulletin 25.10.2018 at 8.00 am

The Company grew, and profitability improved

Brief look at January – September 2018

Key figures and ratios

7-9/18 7-9/17* Change -% 1-9/18 1-9/17* Change -% 1-12/17* Rolling 12mo
Revenue, TEUR 12 834 11 638 10,3% 41 937 38 195 9,8% 50 720 54 461
EBITDA, TEUR 1 066 56 1796,6% 3 619 1 886 91,9% 2 384 4 117
Adjusted EBITDA, TEUR 1 132 436 160,0% 3 800 3 277 16,0% 4 177 4 701
Operating profit, TEUR 492 -495 199,3% 1 821 335 443,4% 308 1 794
Adjusted operating profit, TEUR 558 -115 585,6% 2 002 1 726 16,0% 2 101 2 377
Profit for the financial period, TEUR -105 -803 86,9% 247 -980 125,2% -1 514 -287
Earnings/share, e -0,01 -0,05 84,1% 0,01 -0,06 121,3% -0,08 -0,01
Operating profit-% 3,8 % -4,3 % 4,3 % 0,9 % 0,6 % 3,3 %
Adjusted operating profit 4,4 % -1,0 % 4,8 % 4,5 % 4,1 % 4,4 %
Equity ratio, % 32,7 % 34,4 % 32,7 % 34,4 % 33,7 % 32,0%

* The company has taken the IFRS 15 standard into use on 1 January 2018 retroactively and the comparison figures for 2017 have been adjusted.

Olli Väätäinen, CEO of Solteq: The Company grew, and profitability improved

Solteq Group’s revenue was EUR 41.9 million for the review period, a 9.8 percent increase year-on-year. The drivers of this growth were mainly the acquisitions executed in 2017 and the good demand for digital services. Nearly one fifth of the Group’s revenue originated from outside Finland and continuous services accounted for approximately one third of the revenue.

For the review period, the company’s adjusted EBITDA was EUR 3.8 million and its adjusted operating profit was EUR 2.0 million. The company’s adjusted operating profit for the third quarter was EUR 0.6 million, which was in line with the company’s expectations.

The company continued significant investments in the development of its own cloud-based software products and services. We are especially active in areas that enable us to incorporate artificial intelligence and physical autonomous robotics into our products and services. The product and services development investments resulted into first orders related to the Solteq Smart Retail suite. Solteq Smart Retail is a modular, cloud-based solution platform that simplifies business management and planning in small and medium-sized retail companies especially. Sales management, customer experience optimization and operational improvements can all be executed via the solution platform. The Smart Retail suite is primarily based on company’s own software and it is delivered as a Service.

We also continued the development of the software products and services acquired through acquisitions. In the energy industry, the company received two major orders. Solteq will deliver a new customer service application for Lappeenrannan Energia and Porvoon Energia. The applications will include customer service and invoicing functionalities for district heating and the sales and transfer of electricity. The applications will be delivered as SaaS.

In the third quarter, the Group’s personnel increased from 569 to 584.

The business outlook for the last quarter of the current financial year is good and the company’s profitability is expected to develop positively.

Guidance on Group outlook

Solteq Group’s adjusted operating profit is expected to grow significantly compared to the financial year 2017.

Further information

Olli Väätäinen, CEO, tel. +358 50 557 8111
Martti Nurminen, CFO, tel. +358 40 751 7194

DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.solteq.com

Solteq in brief

Solteq is a Nordic industry-independent IT provider and software house that specialises in digital business solutions. Our mission is to simplify the digital world to make a better tomorrow. We are a partner who knows what it takes to win in digital disruption, regardless of our customer’s industry. Our over 550 experts, who work in five countries, develop and implement solutions for clients mainly in the Nordic countries.